Soybeans, meal and bean oil all ended to the plus side on Monday, while corn and most of the wheat complex made new contract lows.
John Payne, Advance Trading, says soybeans and the products were all adding weather premium with a hotter drier forecast to end August.
However, he thinks there was also value buying in the soybeans by processors who are looking at much improved crush margins.
“Soybean crush margins are good right now,” he says.
Corn could not follow the strength in soybean and instead was drug down by wheat.
Both September and December corn contracts made new contract lows.
Payne says, “I think a lot of it was forced liquidation ahead of first notice day on Friday on September contracts. Farmers are having to make the tough decision of whether to roll or sell ahead of delivery.”
Wheat also saw First Notice Day selling and long liquidation with all three classes making new contract lows early in the session.
Soft Red Winter wheat and Hard Red Spring wheat ended lower, while Hard Red Winter wheat managed to reverse and close higher on the day.
A strong U.S. dollar was also a headwind for wheat and corn on Monday.
